HomeMy WebLinkAboutContract 36162 CITY SECRETARY GI a_
UONTRACT NO.
MEMORANDUM OF OIL AND GAS LEASE
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT §
BE IT REMEMBERED that on the _ day of_ N OV , 2007, a Paid Up
Oil and Gas Lease was made and entered into by and between the CITY OF FORT WORTH,a
home rule municipal corporation of the State of Texas, c/o Director, Department of
Engineering, 1000 Throckmorton Street, Fort Worth, Texas 76102, hereinafter called
"(LESSOR)"; and CHESAPEAKE EXPLORATION, L.L.C.,an Oklahoma limited liability
corporation, P.O. Box 18496, Oklahoma City, Oklahoma 73154, hereinafter called
("LESSEE"), where LESSOR hereby grants, leases and lets exclusively to LESSEE for the
purpose of exploring for, developing, producing and marketing oil and gas, together with any
liquid or gaseous substances produced in association therewith, from the following described
land situated in Tarrant County,Texas,to-wit:
SEE EXHIBIT"A"ATTACHED HERETO AND MADE A PART HEREOF
Subject to the other provisions therein contained, said lease provides for a primary term
of two (2) years, from the date thereof, and as long thereafter as oil or gas or other substances
covered therein are produced in paying quantities from the leased premises or from lands pooled
therewith,or this lease is otherwise maintained in effect pursuant to the provisions therein.
An Executed copy of said Oil and Gas Lease is in the possession of LESSEE at its
address indicated above. �`
Executed this the (day of 1`tOVR400 y,2007,
LESSOR: LESSEE:
CITY OF FORT WORTH CHESAPEAKE EXPLORATION,L.L.C.,
An Oklahoma limited liability corporation
fy�, �
"4
BY Marc ' yi�0
_ By:Cliff J.M it
Title: Assistant City Manager Its:Land Manager
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant City Atto ey
Date: l
tract Auo,, `7 ig "'
ACKNOWLEDGEMENTS
THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, �i eTT: ��� the undersigned notary public, on
this day personally appeared Ti— known to me to be the person whose
name is subscribed to the foregoing instrument and, that (s)he has executed the same for the
purposes and consideration therein expressed.
GIVEN under my hand and seal of office this day of
2007.
� � ` HETTIE LANE Notary Public,State of Texas
?, 4IYCOMMISSIONEXRRES
",;t;;a July 26,2011
My Co//
Commission Number: ee6 93.55'/-7
STATE OF OKLAHOMA §
COUNTY OF OKLAHOMA §
This instrument was acknowledged before me this_ _of Noycm -e✓-2007,
by Cliff J.Merritt as Land Manager of Chesapeake Exploration,L.L.C.on behalf of said
corporation.
JpEN F(� o y Public,State of Oklahoma
EC07004805
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Commission Number: =�...Ao .
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/21/2007
DATE: Tuesday, August 21, 2007 REFERENCE NO.: **L-14378
LOG NAME: 30W H LITTLE
SUBJECT:
Approve Acceptance of Lease Agreement with Chesapeake Exploration, L.L.C., for Natural Gas Drilling
under 14.227 Acres More or Less of City-Owned Properties Located in Tarrant County, Texas, known as
the a€oeW. H. Little Survey AE" 14.227 Acresa€
RECOMMENDATION:
It is recommended that the City Council approve the acceptance of a lease agreement for natural gas
drilling under 14.227 acres more or less of City-owned properties located in Tarrant County known as the
a€oeW. H. Little Survey AE" 14.227 Acresa€to Chesapeake Exploration, L.L.C., for a two-year term.
DISCUSSION:
On May 17, 2005, (M&C G-14798) Fort Worth City Council authorized City staff to advertise a request for
proposals from private companies to drill for natural gas under 3,651 estimated mineral acres of City-
owned properties including 500 acres of miscellaneous parcels and right of way.A The a€oeW. H. Little
Survey a€" 14.227 Acresa€ lease is located between Interstate 35W and the Trinity River just north of
Belknap Street.A Acceptance of this lease agreement will reduce the approved 500 miscellaneous mineral
acres of City-owned parcels by 14.227 mineral acres, more or less.
A request for bid proposals (RFP) was advertised for three consecutive weeks in the Fort Worth Star-
Telegram, published on June 28, July 5, and July 12, 2007.
The following sealed bid for the gas lease was received and opened on July 19, 2007.
Bidder Lease Bonus/Acre Total Lease Bonus % Royalty
Chesapeake Exploration, LLC $ 6314.00 $ 89829.28 25
The bid received was evaluated by staff and the Citya€TMs mineral asset management consultant,
JPMorgan Chase.A A In addition to the lease bonus rate and royalties paid to the City, the bidders€TMs
drilling plan, reputation, financial status, project team and compliance history were also evaluated.
In accordance with the Alternative Assets Agency Account Agreement between JPMorgan Chase and the
City (City Secretary Contract 29698), JPMorgan Chase will serve as the depository of the lease bonus
revenue until the City requests wire transfer of the funds.A The net transfer to the City less administrative
and legal fees is estimated to be $85,337.81 more or less.
The City has established a Minority Women Business Enterprise (M/WBE) participation goal of 3 percent
on City-owned property of 40 acres or more without an investment goal.A On leases of City-owned
property of 700 acres or more, the City has established an option of either a 3 percent M/WBE goal or the
inclusion of an M/WBE investor.A This lease is less than 40 acres therefore no M/WBE participation goal
is required.
Logname: 30W H LITTLE Page 1 of 2
It is anticipated that the lease bonus and royalty proceeds will be held in trust until such time as they are
deposited in the City6ETMs Capital Projects Reserve Fund.
The Property is located in COUNCIL DISTRICT 2, Mapsco 63 P.
FISCAL INFORMATION / CERTIFICATION:
The Finance Director certifies that the Engineering Department is responsible for the collection of funds
due the City under this agreement.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
GC10 446100 013010001000 $85,337.81
CERTIFICATIONS:
Submitted for City Manager's Office by: Marc A. Ott (8476)
Originating Department Head: A. Douglas Rademaker (6157)
Additional Information Contact: Jean Petr (8367)
ATTACHMENTS
No attachments found.
Logname: 30W H LITTLE Page 2 of 2